First-time, women fund managers outperform in FFS scheme: SIDBI CMD

First-time and women-led fund managers outperformed in SIDBI's Fund of Funds for Startups scheme, delivering strong returns and supporting 1,300 startups, says SIDBI CMD Manoj Mittal

The first-time fund managers, as well as women-led funds, delivered a strong performance compared to experienced fund managers as part of the first edition of the Fund of Funds for Startups (FFS) scheme, according to Manoj Mittal, chairman and managing director of the Small Industries Development Bank of India (SIDBI).

 

In a conversation during the IVCA GreenReturns Summit 2025 on Tuesday, Mittal said: “Out of 160 AIFs (alternative investment funds), roughly 56 are first-time fund managers. We did a quick dipstick study and found that out of the 15 top AIFs assisted under the portfolio, nine are from first-time fund managers. So, they are outpacing, doing far better than those experienced fund managers.”

 

Speaking on women-led funds and startups, Mittal noted: “About 198 startups out of 1,300 are women-led, and when we are talking about funds, it’s also only a small number of funds that have been led by women. What we realised is that even women-led funds have done better than the average fund of the same vintage. So, women-led funds have been able to do better than the overall portfolio of SIDBI.”

 

The FFS scheme was approved and established in 2016 with a corpus of Rs 10,000 crore. Under the scheme, about 160 AIFs have been supported, and roughly 1,300 startups have received investment. At the fund level, the investment into startups has given a gross internal rate of return (IRR) of more than 20 per cent to the bank, Mittal shared.

 

While mentioning that roughly 66 per cent of startups, including 19 per cent of women entrepreneurs, assisted under the scheme raised a second round of funding, Mittal said that in the case of smaller cities, the percentage is very low. He noted that it probably indicates the need for further hand-holding and support.